Do I have what it takes to own/manage a small business?

The short answer is yes, but we don't advise that you do this all on your own. By asking this question, you have an essential quality of business ownership - introspection. This quality will also help you realize the outsourced experience that you need to become a successful entrepreneur. It was Andrew Carnegie who said, "Never be foolish as not to surround yourself with people who are smarter than you." What we really think Andrew meant was to surround yourself with people with experience in areas of business where you aren't as experienced.

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What business should I choose?

Usually, the best business for you is the one in which you are most skilled, interested or passionate about. For example, it you have a family recipe for pizza and pasta, then consider opening a restaurant. As you review your options, it is advisable to consult with experts and business professionals (like an Apex Executive business broker) about opportunities in your area. Matching your background with the local market characteristics and using outsourced executives will increase your chance of success.

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What is a business plan and do I need one?

Short answer is YES, you need a business plan and should be written by a professional like an Apex Executive. A buinsess plan precisely defines your business (product or service), identifies your goals, and serves as your firm's resume. Its basic components include a market study, marketing/promotional strategy, current balance sheet, an income statement and a cash flow analysis or projections. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

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Why do I need to define my business in detail?

It may seem silly to ask yourself, "What business am I really in?" Many business owners have gone broke because they never answered that question. One watch store owner realized that most of his time was spent repairing watches while most of his money was spent selling them. He finally decided he was in the repair business and discontinued the sales operations. His profits improved dramatically. Clearly defining your business or your purpose will give a true sense of direction as your venture develops.

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​What do I need to succeed in a business?

There are four basic needs for success in small business:

Few people start a business with all of these bases covered. Honestly assess your own experience and skills; then look for a business consultant to compensate for your deficiencies.

1. sound management practices

2. industry experience

3. technical support

4. planning ability

 

​​​​​​​​What are the components of business that drive the most valuation?

There are 8 key drivers of business valuation. Using the Value Builder system, our executives can tell you where are today on each key driver. They can implement strategies to improve the scores for each of the key drivers. Finally our consultants can show you how those strategies drive up the value of your business and the before and after valuation.

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​​​​​​​​What should I know about accounting and bookkeeping?

The importance of keeping adequate records cannot be stressed too much. Without financial records, you cannot determine how well your business is doing or where it is going. At a minimum, records are needed to substantiate:

1. But most important, you need them to run your business successfully and to increase your profits.

2. Your tax returns under federal and state laws, including income tax and Social Security laws;

3. Your request for credit from vendors or a loan from a bank; and

4. Your claims about the business, should you wish to sell it.

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What financial statements will I need?

You should have your accountant prepare and you should work with your business consultant to understand the three basic financial statements:

the balance sheet, which is a record of assets, liabilities and capital at a specific point in time;

the income (profit and loss) statement, which is a summary of your earnings, expenses and net profit (or loss) over a given period of time;

and the cash flow projection, which shows the actual inflows and actual outflows of cash into and out of your business.

 

What does marketing involve?

Marketing is your most important operational concern. There are four basic aspects of marketing, often called the four P's (Product, Price, Place, Promotion):

As you can see, marketing encompasses much more than just advertising or selling. For example, a major part of marketing involves researching your customers: What do they want? What can they afford? What do they think? Your understanding and application of the answers to such questions play a major role in the success or failure of your business.

1. Product: a description of the item or service you sell.

2. Price: the amount you charge for your product or service.

3. Place: the distribution channels you use to offer the product to the customer.

4. Promotion: the ways you inform your market as to who, what and where you are.

 

​What about advertising/promotion?

Your business growth will be influenced by how well you plan and execute an advertising program. Because it is one of the main creators of your business's image, it must be well planned and well budgeted. Our Executives can help you in devising an effective advertising/ promotional strategy and budget.

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How do I set price levels?

The price of a service or item is based on three basic production costs: direct materials, labor and overhead (the share of facilities, utilities, taxes, insurance, security and other general operating costs of the business attributable to the product or service - for example, if one product accounts for 10 percent of your business, 10 percent of your overhead is assigned to it). After these costs are determined (the break-even cost) you factor in the profit desired. Because pricing can be a complicated process and you must remain competitive as well as profitable, you may wish to seek help from an expert.

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